Lecture 9.2 – Graphical Patterns Analysis (Part 2).(チャートパ� ��ーン分析).pdf

The graphical configurations discussed are called continuation patterns, which indicate a pause in the trend development, and the trend direction will remain the same afterwards. Continuation patterns are short-term and differ from reversal patterns, which reflect a change in the main trend. The duration of formation is also a criterion of difference, with reversal patterns taking more time to form.

Triangles are a type of continuation pattern, with three types: symmetrical, ascending, and descending. They often precede the end of a trend and should be carefully analyzed. A symmetrical triangle is formed by two convergent trend lines, with a base and an apex. An ascending triangle has a horizontal top line and an ascending bottom line, while a descending triangle has a horizontal bottom line and a falling top line.

The formation of a triangle signifies a pause in the present trend, after which the trend will continue. The minimum requirement for a triangle is four points of control, and the signal for completion is when the closing price surpasses one of the trend lines. Trading rules for triangles include buying or selling during the breakthrough of the trend line in the direction of the main trend, with stop-losses placed above or below the breaking trend line.

Flags and pennons are also continuation patterns that form in dynamically developing trends, signifying short pauses. They are similar in interpretation and are considered the most reliable patterns of a continuation trend. Flags look like parallelograms or rectangles, while pennons are similar to small symmetrical triangles. Both models are short-term and require less time to form during a downtrend than an uptrend.